Tips and important info Useful websites Low-risk ways to meet the neighbors

 

The following information is intended to help you understand the home-buying process, give you practical information, as well as point you to some helpful websites! Also, please remember that we are never too busy to answer any of your questions or concerns. Just call us!

 

BUYER TIPS AND IMPORTANT INFORMATION

 

Congratulations! Now that you're in the market to purchase a home, you need to make application for your loan from a qualified lender. Please click here for our list of recommended lenders. Once you have selected a lender, your lender will need many different documents to process your loan. Most lenders require copies of the following items:

 

• Last 2 years W 2's
• Last 30 days of pay stubs
• Last 2 years of federal and state tax returns signed and dated)
• History of where applicants have lived for the past 2 years. (If you have been renting, the name, address and phone number of the landlord)
• Name, address and loan number of all mortgages owned during the past 2 years
• History of where applicants have worked for past several years (including employers name, address, zip and phone)
• Last 3 monthly statements of liquid assets (checking, savings, stocks, bonds, mutual funds, etc…)
• Divorce papers, alimony and/or child support documents (if applicable)
• Bankruptcy papers and judges dissolution orders (if applicable)

 

Depending on your circumstance, the lender may require additional information. Please be sure to get all documentation to your lender ASAP. Any delay in getting documentation could result in a delay for your mortgage approval. It's o.k. to buy a house that needs a little touch-up: Excellent buys are often made on homes that require a little paint and soap. Two identical homes can be priced $1000's apart when one needs about $200 of work. Let me do the leg work for you: I can pre-screen homes that meet your criteria, and save you endless hours of running around.

Help with the purchase: Your parents, family, or friends can contribute to the purchase of your home by way of a "Gift Note." Ask me for details about this simple procedure that may put you into more of a home than you anticipated. You will need a deposit on any offer that you want to submit: Each contract offer that you make on a home must be accompanied by a deposit in the form of cash or check.

Price your offer correctly: If you are serious about buying a particular home, it is important to price your offer correctly; you wouldn't want to lose the home to a better offer, if you were prepared to pay more. Be accessible after you make an offer: Make sure that you are able to be reached after your offer has been submitted. Multiple offers on the same property are quite common these days, and you need to be able to counter an offer in a timely fashion if you expect the property to still be available.

When is the contract binding: The contract is binding only after your offer has been submitted, and the seller has agreed to sell you the property. Even if you make a full purchase price offer, it does not guarantee that the seller will sell. I highly recommend that you have the property you will purchase inspected by a certified home inspector. At an independent inspection, the inspector will look over all the major components of the house (i.e. foundation, roof, electrical, plumbing, etc…) to check for defects. Most inspectors will also give you helpful hints on seasonal maintenance of your home, as well as point out things you need to know (i.e. where the main water shut off is, etc…). You should plan to attend!

When scheduling an inspection, you will be asked if you want a termite inspection (generally required by many lenders). Inspections usually take from 1 to 2 hours, depending on the size of the home. Once the inspections have been completed and reports have been distributed to you and me, I will call you to go over the report. At that time we will make a written response to the seller, asking them to repair anything that affects the health, safety, or habitability of the house. Once the seller has agreed to make repairs and said repairs have been done, you may want to have the house re-inspected to make certain repairs were done properly.

 

 

 

Ways To Search for Homes

 

Multiple Listing Service (MLS) -The MLS combines the listings of all available properties that are represented by brokers who are members of the MLS system and of NAR (the National Association of Realtors).

 

Since all brokers may represent the same inventory, we can show you any property listed with our office as well as those offered through other real estate companies. Working with one real estate broker in the Hampton Roads area is the best policy. It is not necessary to call the listing agents for homes you wish to see; we can show you any property for sale.

 

For Sale By Owner (FSBO) - Some homeowners try to sell their homes themselves, without the assistance of a real estate broker, a practice referred to as FSBO. We can help you with non-listed properties such as FSBO’s and strongly recommend that you have our representation for this type of purchase. Our experience with FSBO sellers is that they welcome working with Realtors and their clients. Realtors help the transaction come together and provide a higher probability of closing the transaction. If you see a property that you are interested in, call me with the phone number and address. I will search for comparable sales in the area to determine if it is priced right and arrange for us to walk through the property together. If you decide to write an offer, I will structure the offer for you, present it to the seller for acceptance, negotiate price and terms for you, and represent your interests throughout the entire purchasing process, including closing.

 

Open Houses - Open Houses are a great way to see properties. In the Hampton Roads area, resale homes generally have Open Houses on Saturday and Sunday afternoons (around 1:00 PM – 4:00 PM). New construction model homes are generally open daily from 12:00 PM – 5:00 PM. Just let the agent or builder’s representative know you are working with us so that we can handle the follow up calls for you, and you can look at the house uninterrupted. If you have an interest in the property, give me a call. I will make an appointment for us to see the house. I may be able to point out features and/or problems that you may have overlooked. (A second set of eyes is always important when making a major decision like purchasing a home!)

 

Builders - If you happen to visit any builder projects or new construction without us, inform them you are working with us. This is important because if the builder is unaware of our relationship, we will not be able to come in after the fact to protect you with your purchasing decisions. The cost of the home does not increase by having representation by a real estate professional. If you don’t have representation, you don’t save money. We will help you through selections, inspections and make sure the closings go as smoothly as possible, and represent your best interests throughout the whole building process.

 

Advertising and Drive-by's - When you see an appealing house with a real estate "For Sale" sign in the yard or advertised in a local publication (such as Homes Illustrated, etc…) give me a call! As a member of the multiple list system (MLS), I can get information and show you homes listed by any real estate company while representing your best interest. I will obtain pricing and amenities information, print listing sheets, and make an appointment to see the interior. Do not call the listing agent to get information. As your representative, I will shield you from innocent sounding questions from other agents that can be used agtainst you later in negotiations. Please do not feel that you are bothering me by requesting information. I am here to serve your needs, and I want to help you!

 

 

Making the Offer to Purchase Real Estate

 

You will be expected to provide a check for earnest money when I submit your offer to purchase. Customarily, earnest money deposits are 1 – 3% of the purchase price and are applied to the purchase price at closing. Earnest money checks should be made out to the listing broker, and are deposited in the Listing Broker’s Escrow Account, immediately upon acceptance of the Purchase Agreement.

 

We will help you arrange an inspection of the home you plan to purchase in order to evaluate the major elements of the home. The inspection should be completed according to the time guidelines in the Purchase Agreement, but is typically done within seven days after your offer is accepted. This home inspection will cost around $200.00 to $350.00 depending on the types of inspections that are done. Termite inspections are an additional fee. Refer to the “Vendor Services” for our recommended home and termite inspectors.

 

You will also need to obtain homeowner’s insurance (commonly referred to as Hazard Insurance). In Indiana, homeowners insurance is paid one year in advance. You will need to bring to closing a paid receipt for this one year of homeowner’s insurance.

 

An insured closing helps protect you in obtaining clear title to the property. Your lender will require you to purchase a mortgagors’ title insurance policy, which will cost around $110.00. This fee is for the title company to make sure that there are no liens or encumbrances on the property or clouds on the title. Keep in mind that you will need to be available (or delegate a power of attorney) to attend the closing. Closings usually take about one hour to complete. We will coordinate with all parties involved in setting this date and time after the acceptance of the offer.

 

 

Closing Day

 

After your loan has been approved, I will schedule a closing at a title company for pertinent documents to be signed. Closings customarily take place at the Title Company at the date agreed to in the purchase agreement. Buyers, sellers and their agents all attend closing, along with a representative from the title company who will conduct the closing. At Keller Williams Hilltop we are very fortunate to have an in-house Title Company, Title Alliance of Virginia Beach.

 

At closing, you will be required to bring several things: two forms of PHOTO I.D. (drivers license, credit card, passport) a CERTIFIED or CASHIERS CHECK made out to yourselves for the amount due by you (please note that title companies do not take personal checks,),and any other documents required by the lender. A copy of the termite inspection and proof of HOMEWOWNERS INSURANCE and a receipt showing PAYMENT HAS BEEN MADE FOR A FULL YEAR’S PREMIUM will have been faxed to the title company prior to the closing. After you close on the property, and you are in title, you will also need to call utility companies and have utilities switched into your name (effective the date of possession.)

 

 

USEFUL WEBSITES

 

Enjoy these useful websites to learn more about all kinds of stuff!

 

• Clear, specific instructions on how to do almost anything! www.ehow.com
• CNN Money www.cnnmoney.com
• USA Today www.usatoday.com
• The ABCs of Real Estate www.realestateabc.com
• Do it Yourself! www.doityourself.com
• Ask the Builder! www.askthebuilder.com
• For women www.ivillage.com
• For your kids www.learningplanet.com
• Check out this website to help you get ready for the big move www.moversdirectory.com

 

 

LOW-RISK WAYS TO MEET THE NEIGHBORS

 

If you’re suffering from NNNS (New Neighborhood Nervousness Syndrome), you’re not alone. Most new homeowners don’t feel comfortable dropping by to introduce themselves to the neighbors. Here are a few low-risk ways to start feeling at home.

 

1. The 6:00 evening walk. Taking a simple walk around your block is probably the least intimidating way to meet the neighbors. Pick a regular time for your jaunt – preferably when people are getting home from work or puttering outside. After a few sightings, introduce yourself. Walking with the kids or the dog is an even quicker way to establish rapport.

 

2. The community-education connection. Most areas offer community-education classes and get-togethers in areas including bridge, photography and family field trips. Parent-child classes are another option. Whatever the topic, these classes are usually inexpensive, informal and small. Some run for weeks, others for single 2- or 3-hour sessions.

 

3. The Kinkos announcement card. The neighbors may be just as shy about meeting you as you are of them. Make up an 8-1/2 x 11”intro sheet” with a family photo, a brief bio and a rundown of your interests, and drop it in the surrounding newspaper boxes.

 

4. An altar approach. Many places of worship host new-member welcoming dinners or after-service coffee and donuts. Who knows? You may meet the person down the block at your new church or other place of worship.

 

5. The voluntary approach. Whether it’s going door to door to collect for the United Way, or becoming involved in the PTA or Meals on Wheels, volunteering lets you meet the neighbors while helping others.

 

6. The rake and shovel draw. Washing your car, gardening, setting up a lemonade stand with your kids – all these outdoor activities send a signal that you’re open and approachable.

 

7. The ask-a-lot-of-questions angle. Almost everyone likes to be asked their advice on things. Where’s the closest dry cleaner? What’s the best restaurant in the area? Is there any good, dependable auto mechanic in town? Ask Away!

 

 

Jill Spiegel
The Family Handyman’s New Homeowner Edition
Spring 2002